Best deals go to new borrowers

Mortgage rates continue to fall for new borrowers - but mainly for those with big deposits or substantial equity in their home.

Yorkshire Building Society has launched a two-year fixed-rate mortgage at 2.99 per cent. It is available only to borrowers with at least 50 per cent equity. The loan has a £995 arrangement fee.

Many fixed rates still offer good value, with First Direct offering a two-year fix at 3.09 per cent for those with 35 per cent equity, though there is a £998 fee. Co-operative Bank has a 3.19 per cent fix for two years with a £999 fee and at least 25 per cent equity.

ING Direct has a lifetime tracker starting at 2.89 per cent, with a £695 fee.

For borrowers who are prepared to risk interest rate rises, First Direct has a lifetime tracker at 1.89 percentage points above the Bank of England base rate.

Trackers mirror rises or falls in the base rate. First Direct's starting pay rate is 2.39 per cent, there is a £499 fee and borrowers must have at least 35 per cent equity.